Why the customers returned merchandise for credit


False Value Hardware began 2013 with a credit balance of $31,200 in the allowance for sales returns account. Sales and cash collections from customers during the year were $620,000 and $580,000, respectively. False Value estimates that 7% of all sales will be returned. During 2013, customers returned merchandise for credit of $25,000 to their accounts.
False Value's 2013 income statement would report net sales of?

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Accounting Basics: Why the customers returned merchandise for credit
Reference No:- TGS0697705

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